(30 Apr 2024)
RESTRICTIONS SUMMARY:
ASSOCIATED PRESS
Harare, Zimbabwe – 30 April 2024
1. People queuing at bank
2. First Capital Bank
3. Various man walking out of bank holding a ZiG note
4. SOUNDBITE (Shona) Takawira Madzimbanyika, bank customer:
"Now I will easily get change and I won’t be forced to buy things I don’t need. We used to buy with US dollars only and would be forced to get salt and matches as change."
5. Various bank customer showing new ZiG notes
6. SOUNDBITE (Shona) Tafadzwa Zinhumwe, bank customer:
"I am sure all the transactions will be easy now that we have ZiG, we can do shopping easily. It was difficult, especially in commuter omnibus people were even fighting and shouting over change."
7. People gathering in street to see new ZiG coins
8. Man counting ZiG coins
9. SOUNDBITE (Shona) Susan Chikumene, bank customer:
"I am scared that some people will con me because I don’t understand its value. We need someone who can teach us, I asked them in the bank and they said they don’t know."
10. Various of man buying from a supermarket using new ZiG current
11. Economist on the phone
12. SOUNDBITE ( English) Happiness Zengeni, Economist:
"It’s really up to government to be able to sustain itself and to be able to be disciplined that they will stay away from the printing press and then people will slowly and gradually begin to accept the local currency and they will not be any need for any alternative market."
13. Various of people queuing at bank waiting for ZiG currency
STORYLINE:
Out with the Zimbabwe dollar, in with the ZiG.
Zimbabwe on Tuesday started circulating a new currency to replace one that has been battered by depreciation and often outright rejection by the people. The ZiG was introduced electronically in early April, but people are now able to use banknotes and coins.
It’s the southern African country’s latest attempt to halt a long-running currency crisis underlining its persistent economic troubles. The government had previously floated various ideas to replace the Zimbabwe dollar, including introducing gold coins to stem inflation and even trying out a digital currency.
Since it was launched electronically on April 5, the ZiG — short for Zimbabwe Gold and backed by the country’s gold reserves — appears to be heading down the same path of mistrust, with some government departments refusing to accept it.
The ZiG is the sixth currency Zimbabwe has used since the spectacular 2009 collapse of the Zimbabwe dollar amid hyperinflation of 5 billion percent, one of the world’s worst currency crashes to date. That set off a chaotic series of events: first the U.S. dollar was allowed as legal tender, then banned, then unbanned.
A new “bond note” became legal tender, the Zimbabwe dollar was reintroduced before the gold coins and digital currency were tried.
However, nothing brought any currency stability and the U.S. dollar remains the most trusted for ordinary Zimbabweans.
The government has allowed some businesses, such as gas stations, to refuse to accept the ZiG in favor of U.S. dollars. Some departments, like the office that issues and renews passports, accept only U.S. dollars.
At the same time, other businesses are being ordered to only use the ZiG, and face punishment if they don’t.
Many in Zimbabwe still remember when a 100 trillion Zimbabwe dollar banknote was printed in 2009 at the height of the hyperinflation to keep up with spiraling prices.
Through the ordeals, the greenback remained precious — and highly valued on the black market.
Video shot for AP by Pindai Dube
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